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Home / SMSFs / SMSF pensions

SMSF pensions

SMSF pensions

Like all super funds, self-managed super funds (SMSFs) can provide you with pension or lump sum benefits in retirement. Retirement is a condition of super release if you have reached your preservation age. Your preservation age is between 55 and 60, depending on your date of birth. Super benefits are tax-free if you’re over the age of 60.

If you start a super pension income stream, you need to transfer funds from your accumulation account to your retirement account to fund your pension. The earnings on these funds are tax-free. You can transfer up to the transfer balance cap (up to $1.7 million) into your retirement account. You need to withdraw a minimum percentage of your retirement account balance each year, which varies, depending on your age.

Transition-to-retirement (TTR) pensions can be commenced once you have reached your preservation age while you’re still working. However, the earnings on funds that support TTR pensions are still taxed at 15%, unlike the funds that support your super pension are if you have retired.

Learn more about the key aspects of SMSF pensions in the following SuperGuide articles:

SMSF pensions: Planning your pension properly

SMSF pensions: Planning your pension properly

Premium Proportioning rule and super tax: What it is and why it matters

Proportioning rule and super tax: What it is and why it matters

Premium What SMSF trustees need to know about exempt current pension income (ECPI)

What SMSF trustees need to know about exempt current pension income (ECPI)

Premium Commuting an SMSF allocated pension

Commuting an SMSF allocated pension

Premium SMSFs: How to start a pension

SMSFs: How to start a pension

Premium Starting a pension from your super

Starting a pension from your super

Premium Total Superannuation Balance: When it applies and what is included

Total Superannuation Balance: When it applies and what is included

Premium Transfer balance cap for super pensions: How it works

Transfer balance cap for super pensions: How it works

Premium SMSFs: Legacy pension relief at long last

SMSFs: Legacy pension relief at long last

Premium SMSFs: What are the lump sum withdrawal rules?

SMSFs: What are the lump sum withdrawal rules?

Set out below are the latest articles that relate to smsf pensions.

SMSF pensions: Planning your pension properly

SMSF pensions: Planning your pension properly

May 9, 2022

Tim Miller from SuperGuardian discusses the most important considerations when planning a pension, potential traps to look out for, and what often can be overlooked.

PremiumWhat SMSF trustees need to know about exempt current pension income (ECPI)

What SMSF trustees need to know about exempt current pension income (ECPI)

March 14, 2022

SMSFs paying a pension may be able to reduce the overall tax liability of their fund. We explain how.

PremiumCommuting an SMSF allocated pension

Commuting an SMSF allocated pension

January 10, 2022

Stopping part or all of a pension can be a useful strategy for SMSFs in certain situations. We explain how and why.

PremiumSMSFs: How to start a pension

SMSFs: How to start a pension

January 10, 2022

It might seem complex to begin with, but if you follow these steps, you should be able to establish your own retirement income stream.

PremiumShould you develop a retirement income strategy document for your SMSF?

Should you develop a retirement income strategy document for your SMSF?

October 8, 2021

Even though SMSFs have been quietly dropped from the government’s proposed Retirement Income Covenant, that doesn’t mean trustees should ignore it.

Video: Explainer on the legacy retirement income products amnesty

Video: Explainer on the legacy retirement income products amnesty

June 15, 2021

John Maroney, CEO of the SMSF Association explains the amnesty on legacy retirement income products that was announced in the 2021 Federal Budget.

PremiumSMSFs: Legacy pension relief at long last

SMSFs: Legacy pension relief at long last

May 18, 2021

SMSF members will be able to exit old-style pensions for new if this Budget measure comes to pass.

PremiumSMSFs: What are the lump sum withdrawal rules?

SMSFs: What are the lump sum withdrawal rules?

May 12, 2021

As you approach retirement, you need to consider what you want to do with your super – lump sum, income stream or a bit of both.

PremiumStarting an SMSF pension checklist

Starting an SMSF pension checklist

March 23, 2020

The following checklist will help you get on top of everything that needs to be when starting an SMSF pension.

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